Vancouver, Canada [RenewableEnergyWorld.com] Finavera Renewables Inc. has announced that it plans to raise US $1,002,000 through a non-brokered private placement of 20,040,000 units at a price of $0.05 per unit. Each unit consists of one common share and one-half of a share purchase warrant, with each full warrant exercisable at $0.10 for 12 months from the date of closing of the private placement.
The company filed the US $0.05 price reservation with the TSX Venture Exchange on November 3, 2008. Proceeds of the placement will be used for the continued development of Finavera Renewables’ wind energy projects, primarily for the B.C. Peace Region projects and for general working capital, Finavera said.
The company also announced that is has applied to extend the term of all 21,000,000 share purchase warrants issued pursuant to a December 2007 private placement. The warrants, exercisable at US $0.15 per share and initially issued for a term of twelve months, have been extended an additional year.
The move to fund Finavera’s wind businesses comes after the California Public Utilities Commission (CPUC) decision to not allow a power purchase agreement between Finavera and PG&E for an ocean energy project to move forward. The CPUC cited concerns about the price of the electricity coming from the project specified under the PPA.